368
Views
0
CrossRef citations to date
0
Altmetric
Articles

How does anti-corruption campaign affect the labour income share in China?

, & ORCID Icon
 

ABSTRACT

Based on the difference-in-difference (DID) methodology, this paper empirically investigates the impact of the current anti-corruption campaign on the share of labour income in China. Using a firm-level data on Chinese corporations listed on Shanghai and Shenzhen Stock Exchanges from 2009 to 2015, we find that the campaign contributes to the rise in the labour income share, while there is considerable heterogeneity. The magnitude of the effect depends on firm’s ownership and market power. This paper advances the existing studies examining the nexus between corruption and income distribution from a novel perspective.

JEL CLASSIFICATION:

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

2 This is called ‘the index of government intervention in firms’ business’, one of the indices of marketization constructed by Fan, Wang, and Zhu (Citation2010).

3 Previous researches on corruption in China confine their attention on economic growth as well as firm performance. Jiang and Nie (Citation2014), Ramirez (Citation2014) and Xu and Yano (Citation2017) follow this line.

4 The total income includes total wage, depreciation of fixed assets, and net profits, all of which are available from annual reports issued by listed corporations.

5 The findings above remain robust to a number of alternative specifications. Due to brevity, we omit robustness analysis.

Additional information

Funding

This research was supported by the National Natural Science Foundation of China [71603115].

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.